PrivatBank (Latvia)
| Company type | Joint stock company |
|---|---|
| Industry | Banking, financial services |
| Predecessor | AS Paritate Banka |
| Founded | 1992 |
| Headquarters | Riga , Latvia |
Area served | Latvia, Italy (former) |
Key people | Ihor Kolomoyskyi, Gennadiy Bogolyubov (founders of parent company) |
| Products | Banking services, payment cards (MasterCard, Maestro, Visa), online banking, money transfer (PrivatMoney) |
| Owner | JSC CB PrivatBank (46.54% as of 2016), various holdings in Cyprus and Bermuda, individual shareholders |
Number of employees | 187 (2020) |
AS PrivatBank, previously known as Paritate Banka, is a Latvian financial institution organized as a joint stock company, holding a banking license since 31 July 1992.
History
The bank was initially registered in 1992 under the name AS "Paritate Banka" and secured its authorization for banking services and foreign currency operations by 1993. It became a member of the SWIFT network in 1997 and started issuing MasterCard and Maestro payment cards in 1998, later expanding its portfolio to include Visa cards by the year 2000.
In 2001, JSC "PrivatBank," Ukraine's largest bank, acquired the majority shareholding, leading to modernization initiatives such as integrating the PrivatMoney transfer system and enhancing its online banking capabilities. The institution rebranded as AS "PrivatBank" in 2007, concurrently raising its authorized capital to 10.65 million LVL.
By 2007, PrivatBank maintained one branch in Italy and thirteen branches throughout Latvia, with locations in key cities including Riga, Valmiera, and Ventspils. The principal shareholder was Ukrainian CB PrivatBank, holding a 46% interest; the parent company's founders, Ihor Kolomoyskyi and Gennadiy Bogolyubov, owned nearly equal portions. Other notable investors included Concorde Bermuda Ltd. with a 9.23% stake and Cypriot private investor Andreas Sofocleous.
As of June 2016, AS PrivatBank was ranked as the 11th largest bank in Latvia. Nevertheless, its Italian branch was shut down by the Bank of Italy due to issues related to anti-money laundering compliance. By the end of that year, ownership was distributed among JSC CB PrivatBank (46.54%), various holdings based in Cyprus and Bermuda, along with individual shareholders holding over 27%.
Following the December 2016 nationalization of Ukraine's PrivatBank, the Ukrainian government indirectly acquired a significant interest in AS PrivatBank Latvia. After a 2019 ruling by a Ukrainian court declared this nationalization unlawful, founder Kolomoyskyi pursued compensation for his financial losses.
By 2020, PrivatBank Latvia had reduced its branch network to nine offices staffed by 187 employees. In July 2022, it transferred the majority of its assets to Industra Bank—a transaction approved by Latvia’s Finance and Capital Market Commission in August 2022.